The Employment Rights Act 2025 is bringing major change to the workplace. According to a poll for workplace expert, Acas, the new rights on Statutory Sick Pay (SSP), taking effect from 6 April 2026, are likely to have the biggest impact on employers and workers.
More workers in scope
The change applies throughout the UK, including Northern Ireland. It greatly increases the availability of SSP, and means up to 1.3 million low paid employees now qualify, who would not have been in line for payment before.
No Lower Earnings Limit
All eligible employees are now entitled to SSP, no matter what their earnings. Previously, SSP was restricted to those earning at or above the Lower Earnings Limit: this requirement has now gone.
From day one and no waiting involved
SSP is now due from the first full day of sickness absence. There is no longer a waiting period. Under the previous rules, SSP was only paid from day four.
What to pay
Under the new rules, SSP is paid at the lower of 80% of average weekly earnings (AWE); or the new, uprated, weekly flat rate of £123.25. This means, for example, that for someone with AWE of £100, entitlement to SSP would be £80 per week.
Many employers, of course, have their own arrangements, and it is still open to employers to continue such occupational schemes, and pay more than the statutory minimum.
Some things stay the same: There have always been eligibility conditions for SSP, and these remain. To qualify, there must be an employment contract, and work must have been done under the contract.
Remember that eligibility extends to those with worker status, including agency workers. Part-time, temporary and casual employees can all be entitled to SSP, if they satisfy the qualifying conditions. Note, too, that SSP is paid for qualifying days, and the rules here remain.
What employers should check
Payroll systems should have been adjusted for the change; and sickness absence policies, contracts and handbooks, should have been updated, so that they no longer carry references to earnings thresholds or waiting periods. Absence notification takes on new importance, so that payroll is alerted to the need for SSP.
Employee communications and staff training are other areas that will need attention. And of course, cost is another issue for employers. Estimates suggest the change comes with a price tag of around £15 per employee, so that budgeting for higher SSP will also be necessary.
One last reason to get it right
A new government body, the Fair Work Agency (FWA), is now up and running. Its remit is the enforcement of key employment rights, such as agency worker protections and gangmaster licensing. It will also oversee Minimum Wage enforcement: HMRC’s Minimum Wage team is operating under contract to the FWA until 2027, when it is expected to transfer to the FWA.
In due course, additional areas such as holiday pay and SSP will be added to the FWA’s remit. The FWA will have powers to investigate breaches, issue civil penalties, and take action against labour exploitation. Employees will be able to make referrals to the FWA if they think their rights are being breached.
This is likely to mean increasing scrutiny of employer compliance, and employers are recommended to familiarise themselves with the FWA’s enforcement policy statement.
Reviewing compliance with employment rights, such as the newly-introduced requirement to keep adequate records on holiday pay and annual leave, is especially important.
